Good morning and welcome back to the City AM liveblog. Markets are returning from the weekend to a fresh round of volatility. The mood ended last week on a high following the re-opening of the Strait of Hormuz but that sentiment was quickly squashed over the weekend as tensions renewed.

Shipping in the Strait of Hormuz has once again ground to a halt following a brief open on Friday. The regime in Tehran warned the new close will remain in place until the US blockade is lifted. Following this, Iranian gunboats fired at vessels attempting to pass through, with at least three reported attacks on commercial ships.

Donald Trump responded to Iran’s declaration as referring to the regime getting “a little cute” but added the US would not be blackmailed. The President tasked Vice President JD Vance with another round of talks – which comes after a previous 21 hour session in Pakistan – however Iran has rejected a second bid. Trump has since doubled down on his threat to “knock out” Iran’s power plants and bridges unless a deal is reached, with the current ceasefire set to expire on Wednesday.

This week Chancellor Rachel Reeves has called in bosses of the UK’s top banks for talks over how the country can handle the economic fallout of the war. We’ll be bringing you the latest updates and analysis. Here’s a few of our top headlines for you this morning Iran warns Strait of Hormuz will stay restricted as ceasefire deadline looms Sainsbury’s threatens to crack down on shoplifters caught swapping eggs ‘Bond market tantrum risks’: Gilt traders brace for Labour leftward pivot Energy price cap: Household bill spike could be lower than originally feared UK chief executives scramble as Anthropic expands London AI hub ‘Concerned but not surprised’: Three-quarters of UK landlords and sole traders miss digital tax launch Tankers report being fired upon as Tehran closes Strait of Hormuz again The liveblog has ended.No liveblog updates yet. Load more